(RIO1) Rio Tinto - Ratings and Ratios

Rio Tinto Group, a global leader in the mining and minerals sector, specializes in the exploration, extraction, and processing of mineral resources. The company operates through four primary segments: Iron Ore, Aluminium, Copper, and Minerals. The Iron Ore segment focuses on mining iron ore, along with salt and gypsum production, primarily in the Pilbara region of Western Australia. The Aluminium segment encompasses bauxite mining, alumina refining, and aluminum smelting, as well as recycling activities. The Copper segment involves the mining and refining of copper, along with by-products such as gold, silver, and molybdenum. The Minerals segment covers a diverse range of operations, including borates, titanium dioxide feedstock, iron concentrates, and pellets, as well as diamond mining and marketing. Additionally, the company is involved in the development of battery materials, such as lithium, positioning itself for future growth in the renewable energy sector. Rio Tinto operates an extensive network of open-pit and underground mines, refineries, smelters, and processing facilities, supported by power generation and shipping infrastructure. Established in 1873, the company is headquartered in London, United Kingdom, and is recognized for its long-standing history and global influence in the mining industry.

From a technical perspective, Rio Tintos stock (XETRA:RIO1) shows a SMA20 of 53.24 and SMA50 of 55.94, both above the current price of 51.26, indicating potential short-term weakness. The SMA200 at 56.51 suggests a broader downtrend. The ATR of 1.54 reflects moderate volatility. Based on this data, the stock may face resistance at the SMA50 level of 55.94 and support near the SMA200 at 56.51.

Fundamentally, Rio Tintos market cap of 81,888.31M EUR underscores its position as a major player in the mining sector. The P/E ratio of 8.15 and forward P/E of 8.61 indicate undervaluation relative to earnings expectations. The P/B ratio of 1.70 suggests modest equity valuation, while the P/S ratio of 1.53 reflects reasonable revenue valuation. The RoE of 34.96 highlights strong profitability and efficient capital use.

3-Month Forecast: Based on the convergence of technical and fundamental data, Rio Tintos stock is expected to remain range-bound with potential downside risk. The SMA20 and SMA50 above the current price suggest limited upside momentum, while the ATR indicates manageable volatility. Fundamental strength in P/E and RoE may provide support. Target price range: 49.50 - 54.50 EUR. Key resistance at 55.94 and support at 50.00.